Now is the time to maximise your cap limit!

Customer making payment at eftpos machine

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Now is the time to maximise your cap limit!

There are a host of salary packaging benefits you can take advantage of up to your allotted cap (eligible health employees, $9,010 and eligible charity employees, $15,900). If you do not use your full salary packaging limit within the FBT year, the funds will remain in your account for you to use in the next FBT year which begins on 1 April 2022.

To maximise your potential tax savings, however, you must use your full cap limit before the end of the FBT year.

If you have a balance of unused funds at midnight on Thursday 31 March 2022, you do not lose this money, which is a common misunderstanding. The balance will stay on your account for you to spend in the new FBT year, which begins on Friday 1 April 2022. However, these funds will form part of your new cap, which means you may lose the potential tax savings on the cap limit you have not used from the previous FBT year.

Luckily for you, the end of each FBT year ends on the same date — 31 March – so there is plenty of time to plan.

Let’s take a look at the key dates and the things you need to know.

Maxxia Wallet Card

If you salary package the Maxxia Wallet card you need to reduce the balance to zero by 31 March 2022. If you have any unspent funds remaining on your Maxxia Wallet at midnight 31 March, you will not lose this money.

The balance simply rolls over for you to spend in the new FBT year, which begins on Friday 1 April, 2022. However these funds will form part of your new cap.

Remember to check your Meal Entertainment balance!

This FBT year has been a tricky one for Meal Entertainment as many people have been unable to spend their Meal Entertainment funds while in lockdown. So if you've accrued a ‘banquet balance’, there's no better time than now to get out there and start spending! You still have until 31 March 2022 to maximise your benefit, so keep checking that Meal Entertainment balance!

Do: Have fun with your Maxxia Wallet! And if you’re running out of ideas, buy a gift voucher; this will help clear the balance on your Wallet and you can use the voucher at a later date.

Don’t: Leave it until the last minute to spend your balance!

Tip: Use the Maxxia app or Maxxia Online to track your balance so you know what you’ve spent, and how much you’ve got left to spend.

Here are some more ideas for helping to reduce the balance on your card:

  • Give your other cards a rest and use your Maxxia Wallet as much as you can throughout January, February, and March!
  • You can use your Maxxia Wallet to buy gift vouchers which can be used at a later date, while still reducing your balance – this applies to Living Expenses only.
  • Why not pre-pay some bills? Another easy way to reduce the balance on your card as much as possible before 31 March – this applies to Living Expenses only.

Contacting Maxxia during the EOFBTY

While we aim to do our absolute best, the EOFBTY can mean extended call-wait times. We recommend the below options for keeping in touch with us during this time.

Maxxia Wallet is issued by EML Payment Solutions Limited ABN 30 131 436 532 AFSL 404131. Maxxia Pty Ltd ABN 39 082 449 036 is an Authorised Representative of EML Payment Solutions Limited, Australian Financial Services Authorised Representative number 000278683. This information about the Maxxia Wallet is general in nature and does not take into account your personal objectives, needs and circumstances. You should consider the appropriateness of the information having regard to your personal circumstances and consider the Product Disclosure Statement page before making any decision to acquire an insurance the product. Read the PDS at maxxia.com.au/maxxia-wallet/pds for more information. Mastercard and the Mastercard brand mark are registered trademarks, and the circles design is a trademark of Mastercard International Incorporated.